Surprising cities make ‘promising suburbs’ list

New research has identified a number of Australian regions where a swing in relative demand is expected to benefit property owners.

LocationScore’s latest Property Swingers Report assessed demand versus supply across the country’s 20 largest Significant Urban Areas (SUAs). The site also highlighted the most promising suburbs in each SUA, revealing rising markets set for firming capital gains, according to Jeremy Sheppard, director of research at LocationScore.

Based on a three-year comparison, the SUAs of Bendigo, VIC; Townsville, QLD; Ballarat, VIC; Geelong, VIC; and Hobart, TAS have become the most attractive to buyers.

Hobart, Townsville, Bendigo, and Darwin emerged on top when examining swings across a one-year period.

Sheppard said it was interesting to see lesser known SUAs gain some ascendancy. “Many of these wall-flower locations sit outside the traditional hotbed of big city capital gains,” he said. “Regions considered the dominants of the capital growth party throughout the last half-decade are having a breather while new players take the lead and drive the action.”

Sydney“The [latest] results reveal Sydney’s market slowdown is well and truly entrenched with buyer demand waning. Vendors must become realistic about their pricing, or risk seeing extended days on market until they reprice appropriately,” LocationScore said.

Despite the overall lacklustre performance, the suburban markets of Allambie Heights, Oatley, and Annandale were deemed the most promising, as demand still continues to outstrip supply.

MelbourneThe Victorian capital has put on a promising performance despite a reasonably flat LocationScore result across the three years.

“Melbourne’s median LocationScore never reached into the 70’s in the last 3 years like it did for Sydney’s boom. But Melbourne had scores in the mid to high 60’s. And although there’s been some recent cooling, the median is still a very entertaining 65. This is the second highest median LocationScore for any significant urban area in the country.”

For those eager to invest in the most promising markets, LocationScore recommends Baxter, Cockatoo, and Eltham.

BrisbaneWhile the city is forecasted to deliver plenty of promise, its LocationScore confirms a history of “steady-as-she-goes” demand versus supply.

“Brisbane’s result continues the city’s history of slow and steady gains and stable long-term performance. Our research shows it presents investors with an overall growth potential that is best described as ‘measured’,” Sheppard said.

LocationScore recommends the suburbs of Bray Park, The Gap, and Everton Hills, based on the results.

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